Foreign Relations of the United States, 1952–1954, General: Economic and Political Matters, Volume I, Part 2

Eisenhower Library, Eisenhower papers, Whitman file

Memorandum of Discussion at the 183d Meeting of the National Security Council on Thursday, February 4, 1954¹

top secret
eyes only

February 4, 1954

The following were present at the 183rd Meeting of the Council: The President of the United States, presiding; the Vice President of the United States; the Acting Secretary of State; the Secretary of Defense; the Director, Foreign Operations Administration; the Director, Office of Defense Mobilization. Also present were the Secretary of the Treasury; the Secretary of Commerce (for Item 2); the Acting Director, Bureau of the Budget; the Chairman, Atomic Energy Commission (for Item 2); the Chairman, Joint Chiefs of Staff (for Items 3 and 4); the Director of Central Intelligence; The Assistant to the President; Robert Cutler, Special Assistant to the President; Mr. Max Lehrer, Department of Defense (for Item 3); the Executive Secretary, NSC; and the Deputy Executive Secretary, NSC.

Following is a summary of the discussion at the meeting and the chief points taken.

[Here follow an oral briefing by the Director of Central Intelligence on significant world developments affecting United States security, and discussion of United States policy toward Yugoslavia and Formosa.]

4. United States Objectives and Courses of Action With Respect to Indonesia (NSC 171/1, paragraph 20; Memo for NSC from Executive Secretary, same subject, dated January 20, 1954; NSC Action No. 1020; Memo for NSC from Director, ODM, dated February 4, 1954²)

Mr. Cutler summarized the previous action of the Council with respect to the purchase of Indonesian tin, and then asked Dr. Flemming to report to the Council his recommendations as to how the action should be carried out.

Dr. Flemming then passed around to members of the Council a memorandum on the subject, which he proceeded to read (copy filed with the minutes of the meeting).³

Secretary Humphrey heartily endorsed the recommendations which were contained in Dr. Flemming’s memorandum, and himself handed out copies of a chart which indicated the declining uses of tin in the U.S. economy (copy of this chart filed with the minutes of the meeting).⁴ This, said Secretary Humphrey, shows what happens when you price yourself out of a market.

The President stressed the importance of seeing to it that the tin problem was now closed out, and that the Bolivians did not come back next year with a proposition to sell us still more tin.

Governor Stassen indicated that the FOA had been concerning itself with efforts to broaden the Bolivian economy so that it would not be so critically dependent on the export of tin.

The National Security Council:

Adopted the recommendations set forth in a memorandum presented by the Director, Office of Defense Mobilization, dated February 4, 1954, with reference to the handling and distribution of the United States surplus tin supply (including the amount to be purchased from Indonesia) and with reference to United States non-participation in the proposed International Tin Agreement, as amended in the light of the discussion at the meeting.

Note: The above-mentioned memorandum, including the recommendations as amended by the Council and approved by the President, subsequently circulated for appropriate implementation.

[Here follows the conclusion of the meeting with the Council noting the status of NSC projects as of February 1.]

1. This memorandum was prepared on Feb. 5 by Deputy Executive Secretary of the NSC Gleason.
2. For text of NSC 171/1, “United States Objectives and Courses of Action With Respect to Indonesia,” Nov. 20, 1953, see volume xii, Part 2. The Jan. 20 memorandum by Lay transmitted a memorandum by the Chairman of the Operations Coordinating Board in which it was recommended that the United States make a reasonable offer to purchase tin from Indonesia, despite the fact that the U.S. stockpile was complete, to support the Indonesian economy. NSC Action No. 1020 was the directive issued by the NSC at its meeting of Nov. 19, 1953, pursuant to its discussion of NSC 171 concerning Indonesia. The Feb. 4 memorandum transmitted to the NSC the decisions taken at the meeting of Jan. 25, recorded in the memorandum of conversation by Jarvis, supra.
3. Presumably a reference to the Feb. 4 memorandum described in footnote 2 above.
4. Not found.